A single fraudulent online transaction can cost a merchant hundreds of dollars, and that is only the beginning. Merchants who experience notably high rates of fraud inevitably receive penalties from their banks, as well. Over time, a merchant who fails to keep fraud levels down can end up losing an account and being forced to look into even higher priced service.
That alone would be a good reason to fight back against fraud, but many merchants have discovered that doing so is rarely easy. With customers using payment cards where authorization can be difficult to detect, preventing fraud online inevitably turns out to be difficult.
Verifying Identities and Preventing Fraud, Saving Money for Merchants, Customers, and Others
Fortunately, there are now technologies and services that can be applied to help fight back against this increasingly common problem. While a particular shopper’s true identity might not be easy for a merchant to ascertain alone, making use of one of these supporting options can make things much simpler.
As those who learn here today will see, for example, a company named Jumio has created an interesting technology that essentially automates the process. By requiring that shoppers submit snapshots of identifying documents issued by any of more than 200 countries worldwide, its Netverify service makes fraud a lot more difficult to carry out.
Raising the Bar for Fraud Makes Criminals More Likely to Look Elsewhere
It might be objected that ambitious, resourceful criminals could still create fake documents and use these to carry out fraudulent purchases online. While there is some truth to this perception, the reality is that following through on this kind of response would be extremely expensive and time consuming for fraudsters.
Given that criminals are most interested in maximizing their gains quickly, in fact, options like this can almost be entirely ruled out right from the beginning. By making fraud even a little more difficult to succeed with, a merchant can be almost assured of becoming much less of a target.
As a result, solutions of this kind are already proving themselves to be extremely effective in the fight against fraud. That is good news for the many merchants who might otherwise find that fraud online starts to undermine their business activities.